Virginia is home to the largest data center market in the world, and rapidly rising demand for electricity to supply that industry — while keeping rates affordable for the Commonwealth’s households — is driving an “all of the above” approach to energy planning.

Why Virginia

Need for more transmission

 Virginia is home to the largest data center market in the world, hosting hundreds of facilities, including 150 of the largest “hyperscale” data centers. Demand for electricity from the data center industry, and to ensure affordable, reliable energy for Virginia households, is driving bipartisan support for an “all of the above” approach in the Commonwealth. While offshore wind power projects are facing federal policy hurdles elsewhere on the East Coast, Virginia’s largest utility is moving quickly to bring online 2.6 MW in offshore wind capacity beginning in spring 2026. 

Siting opportunity

To meet Virginians’ current and future needs, transmission developers are also planning several projects across the Commonwealth. These include projects that are part of a regional joint venture approved by grid operator PJM to reinforce grid reliability in the Commonwealth and neighboring Maryland and West Virginia. 

To speed up the permitting process and minimize the need to build on undisturbed and private land, state agencies and policy makers can allow and encourage the siting of electric transmission in highway rights-of-way (ROW) and other existing corridors.   

Challenges

Siting prohibition

The Virginia Department of Transportation (VADOT) Utility Manual of Instructions (Section 8.3.3, Subsection G) prohibits overhead transmission lines from being installed longitudinally in the ROW of any controlled access highway

Our work

The map at right highlights planned transmission projects and highway corridors where co-location is currently prohibited. 

By lifting the prohibition on co-location in interstate highway ROW, Virginia could help transmission projects avoid costly litigation, slower permitting, and community opposition, while creating shovel-ready utility jobs.   

NextGen Highways is exploring legislative and policy routes to lifting the prohibition on interstate highway co-location, including a potential bill to be introduced in the Commonwealth’s 2026 legislative session. To lay the groundwork for these efforts, we have recruited a diverse coalition representing energy, environmental, and municipal interests. 

Coalition members